There are calls for work training schemes to be re-introduced before beneficiaries who have never been in a job are forced into the labour market.
The Welfare Working Group report says New Zealand's system is unsustainable, and too many people have been on benefits for too long.
A Maori Council executive, Manu Paul, agrees and says many Maori families have never worked.
But Mr Paul says he doesn't support mothers with young children being forced into work as they have an important job to do at home.
RadioLIVE